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NEWS RELEASE arlo Arlo Reports Second Quarter 2021 Results Exceeded High - End of both Revenue and non - GAAP EPS Guidance for the Quarter 48 % year over year growth in Service Revenue , Product Revenue and Total Revenue 133 % Year over Year growth in Total Paid Accounts Ended quarter with Cash , Cash Equivalents and Short - term Investments Balance at $ 178.7 million , with No Debt SAN JOSE , California - August 4 , 2021 - Arlo Technologies , Inc. ( NYSE : ARLO ) , a leading internet - connected security camera brand , today reported financial results for the second quarter ended June 27 , 2021 . Financial Highlights ( 1 ) . • Revenue of $ 98.6 million , an increase of 47.9 % year over year . • GAAP gross profit of $ 26.2 million , an increase of 376.8 % year over year ; non - GAAP gross profit of $ 27.5 million , an increase of 328.5 % year over year . GAAP gross margin of 26.6 % ; non - GAAP gross margin of 27.9 % . • GAAP net loss per diluted share of $ ( 0.28 ) ; non - GAAP net loss per diluted share of $ ( 0.04 ) . • Cash , cash equivalents and short - term investments of $ 178.7 million and no debt at the end of Q2 . " I am proud to say the Arlo team delivered exceptional results across the entire business in Q2 , successfully navigating considerable supply chain challenges . Revenue and non - GAAP EPS both came in above the high end of our guidance range . Our new business model for services continued to gather momentum , adding a record 146,000 Paid Accounts in the quarter and surpassing 700,000 Paid Accounts in total on July 4th , propelling our service revenue to a record $ 25.3 million , up an impressive 48 % year - over - year . Our refreshed product line - up also contributed to very strong product revenue growth of 48 % year - over - year . We continued to execute to plan in our partnership with Verisure , delivering 123 % year - over - year revenue growth in Europe and commencing production of a new camera system designed specifically for the needs of the Verisure Security Channel , " said Matthew McRae , Chief Executive Officer of Arlo Technologies . “ Our impressive revenue growth of 48 % was significantly over- indexed by non - GAAP gross profit , which grew 328 % and by $ 21.0 million year - over - year . Our innovation in Services accelerated with the launch of Arlo Secure and Arlo Secure Plus , our new Service plans , which will extend Arlo's technological leadership , while adding significant value to our customers . Our industry - leading hardware continued to garner acclaim , winning multiple awards and commendations . With this tremendous progress on all fronts , we believe we are well - positioned to achieve $ 100.0 million in service revenue and $ 410.0 to $ 420.0 million total revenue this year . " Revenue GAAP Gross Margin Non - GAAP Gross Margin ( 1 ) GAAP Net Income ( Loss ) per Diluted Share Non - GAAP Net Income ( Loss ) per Diluted Share ( 1 ) Three Months Ended Six Months Ended June 27 , 2021 March 28 , 2021 June 28 , 2020 June 27 , 2021 June 28 , 2020 $ 98,571 26.6 % 82,556 31.3 % ( in thousands , except percentage and per share data ) $ $ 66,632 181,127 $ $ 132,082 8.2 % 28.7 % 7.1 % 27.9 % 32.3 % 9.6 % 29.9 % 8.5 % $ ( 0.28 ) $ ( 0.13 ) $ ( 0.38 ) $ ( 0.42 ) $ ( 0.89 ) $ ( 0.04 ) $ ( 0.03 ) $ ( 0.31 ) $ ( 0.07 ) $ ( 0.64 ) ( 1 ) Reconciliation of financial measures computed on a GAAP basis to financial measures computed on a non - GAAP basis are provided at the end of this press release . Page 1